In a press statement, Aclara said it will provide the smart meters to Consolidated Edison, and Orange and Rockland (O&R).
Supply of the 3.9m smart meters will start once Aclara receives regulatory approval from the New York Public Service Commission.
The smart meters will be deployed to utility consumers under an AMI project set to cover New York City, Westchester, and Orange and Rockland counties.
The US-headquartered smart infrastructure company serving 500 gas, water and electric utilities globally claims its smart meters will enable Con Edison and O&R to optimize voltage levels, reduce manual meter-reading, reduce energy consumption and minimize greenhouse gas emissions.
In addition, the smart meters will increase the utilities’ network reliability and enable the utilities' outage management systems to automatically detect problems and determine the scope and location of outages to speed restoration of service.
Awarding of the contract comes around two months after the acquisition of Aclara Meters, GE Energy Management's Grid Solutions electricity meters business, by Aclara Technologies LLC.
Under the deal signed in Q4 2015, Aclara took over more than 300 employees along with GE Meters' global headquarters in Somersworth, New Hampshire, a satellite manufacturing facility in Chicago, Illinois and a centre of excellence in Bilbao, Spain.
As part of the buy-out, Aclara also acquired GE Meters' intellectual property portfolio of active patents and patent applications.
Commenting on the significance of the deal, Allan Connolly, CEO and president of Aclara, said the acquisition significantly enhances "Aclara's offering for electric utilities across North America and around the globe."
While Brian Urbanek, managing director of Sun Capital, Aclara's private equity owner, said the buy-out boosts the company's energy management offering.
Mr Urbanek said: "Aclara will greatly benefit from GE Meters' deep technology foundation and its seasoned engineering group.
"This expertise will support Aclara's focus on addressing key technology trends including AMI integration, cyber security and standards, design for cost and field upgradability, all of which are important aspects of a smart infrastructure environment."